American petroleum company QEP Resources Inc. on Monday said that it would spin off its QEP Field Services division as well as its 25% stake in QEP Midstream Partners LP.
Reuters said that QEP Resources bowed to pressure from activist hedge fund Jana Partners LLC. Jana in October argued that the oil producer needs a more drastic restructuring of the company to invigorate its lackluster share-price performance, Wall Street Journal (WSJ) said in another report.
WSJ said that Jana supported the company's recent announcement. Jana owns 7.6% of QEP Resources, making it the company's largest shareholder.
Meanwhile, QEP Resources in a statement said that it expects the separation to unlock value for shareholders. The move also aims to allow each business to compete more effectively in its respective market, the company added.
QEP Resources' board has directed management to take steps toward a split, including engaging a search firm to help recruit additional senior management capable of running the company. The management has also been asked to look for potential ways to create the new entity, WSJ said.
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